Published: Sunday July 22, 2012 MYT 5:15:00 PM
Govt mulls restructuring subsidies
BACHOK: The Finance Ministry is studying a restructuring of all forms of subsidies, especially oil and gas, to ensure they benefit target groups and help reduce the burden of low-income earners.
Deputy Finance Minister Datuk Dr Awang Adek Hussin said he welcomed suggestions on the matter from any quarters, to be included for the tabling of Budget 2013.
He told this to reporters after meeting residents of Kampung Perupuk here Sunday.
Awang Adek was responding to a suggestion by Umno Youth for the Government to restructure the subsidies given to the people so that they could be channelled directly to the target groups.
According to Umno Youth leader Khairy Jamaludin, subsidies for oil and gas were found to benefit the high-income earners more.
The matter has been raised by many quarters but none have submitted a comprehensive delivery system that could meet the target, said Awang Adek, who is also Kelantan Umno deputy liaison chief.
He said the Government had placed the price of RON97 petrol under a managed float and maintained the subsidy for RON95, used mostly by low-income earners. - Bernama